The settlement news comes one day after lawyers for both sides spent all day in mediation. Neither Fat Joe nor John “Jellybean” Benitez of Jelly’s Jams appeared at Wednesday’s hearing.

Big Pun’s widow sued the Fat Joe and music publisher Jelly’s Jams for breach of contract, alleging that Fat Joe reneged on a deal to split Pun’s music profits, and wants his back royalties, advances and money from using his songs on TV and in movies.

The terms of the settlement were confidential, but an expert testified that Fat Joe owed Big Pun at least $2 million.

“We are pleased with the settlement,” Rios’ lawyer Lita Rosario told BOSSIP. “We think it was fair, and we’re pleased.”

Stranzl, and Fat Joe’s other lawyer John Cain, refused to comment after the hearing. Lauren Kruger, lawyer for Jelly’s Jams, also declined to comment.